Owner of several Maine nursing homes files for bankruptcy protection, seeks to sell business
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Genesis HealthCare Inc., the Pennsylvania-based owner of close to a dozen nursing homes and related facilities in Maine, has filed for Chapter 11 bankruptcy protection and hired an investment bank to explore a potential sale of all or part of the business.
Genesis HealthCare Inc., the Pennsylvania-based owner of close to a dozen nursing homes and related facilities in Maine, has filed for Chapter 11 bankruptcy protection and hired an investment bank to explore a potential sale of all or part of the business.
The company owns nearly 200 skilled nursing centers and senior living communities in 17 states. Through its subsidiaries, it also provides rehabilitation therapy at around 1,400 locations in 43 states and the District of Columbia.
Genesis is seeking to restructure its debt via a Chapter 11 case filed earlier this month in U.S. Bankruptcy Court for the Northern District of Texas, based in Dallas.
“We believe this financial reorganization is a necessary step for our organization to sustainably deliver on our mission of improving lives through delivery of high-quality healthcare and everyday compassion,” said Lauren Murray, Genesis HealthCare’s chief operating officer, in a July 9 news release.
In Maine, Genesis owns Cedar Ridge Center in Skowhegan; Orono Commons in the Penobscot County town; Oak Grove Center in Waterville; Sandy River Center in Farmington, Harbor Hill Center in Belfast; Windward Gardens in Camden; Sedgewood Commons in Falmouth; Windward Gardens in Falmouth; Marshwood Center in Lewiston; Pine Point Center in Scarborough; Springbook Center in Westbook; and River Ridge Center in Kennebunk.
Subject to court approval, Genesis has secured a commitment of $30 million in debtor-in-possession financing from its existing secured lenders.
Combined with cash on hand and cash flow generated from ongoing operations, the $30 million will enable Genesis to satisfy its ongoing obligations and enable it to keep delivering quality care during the court-supervised process, the company said earlier this month.
More recently, Genesis hired Jeffries LLC, a New York-based investment bank, to aid in the restructuring and provide financial advice and assistance in connection with a possible sale of all or part of the business, according to a July 29 court filing.
Chicago-based law firm McDermott Will & Emery LLP is serving as legal counsel to Genesis while Washington-based Ankura Consulting is providing financial restructuring and chief restructuring officer services. Jefferies is acting as exclusive investment banker.
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